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The article discusses two separate research papers. The first paper examines the factors that influence changes in household asset allocation patterns, finding that three factors (long-term equity risk premium, credit premium, and municipal bond premium) explain 81% of the variation in rebalancing across asset classes. The second paper analyzes the impact of central bank announcements on interest rates and exchange rates during the COVID-19 pandemic. It finds that "whatever-it-takes" announcements had a greater effect on lowering bond yields compared to size-limited announcements, and that open-ended announcements had a significant impact on longer-term yields. The researchers caution that central banks cannot solely rely on whatever-it-takes policies in future crises. Additionally, the article briefly mentions another research paper that examines the effects of increased immigration enforcement on public safety, specifically among Hispanics. The study finds that the Secure Communities program led to a decrease in crime reporting among Hispanics and an increase in victimization rates. [Extracted from the article]

The credit markets have experienced a significant decline at the start of 2024, resulting in the loss of hundreds of billions of dollars in value. The combined value of high-grade and junk markets has decreased by $240 billion to $13.6 trillion, the lowest since December 13. This decline has been exacerbated by the rebalancing of bonds underlying the indexes at the end of last month. Credit-default swap indexes have also seen an increase in spreads, indicating higher credit risk. The reversal of the optimistic sentiment from late 2023 is due to central bankers' reluctance to cut interest rates and concerns about a potential wider conflict in the Middle East. The widening gap between global high-grade bond yields and sovereign debt further highlights doubts about rate cuts. The issuance of new corporate bonds is adding pressure to the market, as portfolio managers may have to sell old bonds to buy new ones. Despite the recent decline, the credit market's value is still higher than it was in late October. The market is expected to remain volatile until central banks confirm expectations of rate cuts. [Extracted from the article]

The credit markets have experienced a significant decline at the start of 2024, resulting in the loss of hundreds of billions of dollars in value. The combined value of high-grade and junk markets has decreased by $240 billion, erasing all gains made since December 13. Credit-default swap indexes have also risen to levels last seen in early December. This reversal of fortune follows the optimism of late 2023, when interest-rate cuts and economic growth were anticipated. However, central bankers are now hesitant to cut rates due to inflation concerns and the potential for a wider conflict in the Middle East. The market is expected to remain volatile until central banks confirm rate cuts. [Extracted from the article]

The picture is even bleaker for the riskiest corporate debt, with Goldman Sachs lifting its euro high-yield spread target to 450 basis points by year end, from a current level of 424 basis points. (Bloomberg) -- Banks are boosting their European credit spread forecasts as the prospect of aggressive interest-rate hikes rattles global bond markets. Separately, ABN Amro Bank NV said that the withdrawal of ECB corporate bond purchases could prompt a near-doubling of high-grade spreads to 95 basis points from 55 basis points. [Extracted from the article]

The ECB said that when looking at financing conditions for various types of collateral in securities financing transactions, survey participants reported a mixed picture in regards the maximum amount of funding offered against euro-denominated collateral. The European Central Bank (ECB) on Tuesday published results of a recent June 2023 survey on credit terms and conditions, focused on euro-denominated securities financing and over-the-counter derivatives markets (SESFOD). [Extracted from the article]

(Bloomberg) -- From Treasury yields hitting 3% to shorting technology stocks, traders are busy updating playbooks on what a more hawkish-than-expected Federal Reserve would mean for markets. Swaps traders now see a 76% chance the Fed will raise the policy rate by 25 basis points in March, compared with just 26% at the start of December. In Europe, the spread between U.K. and German short-end rates is climbing as investors expect the European Central Bank to trail the Fed and Bank of England in raising rates. [Extracted from the article]

The article discusses the economic consequences of negative interest rates introduced at the European Central Bank and the Bank of Japan. The effect on money managers of negative interest rates on sovereign and corporate bonds is scrutinized, statistics on the volume of negative interest rate debt are offered, and a chart of regional variations in interest rates in countries including the U.S., Switzerland, and Japan is provided.

The European collateral market remained tight at the end of last year as the amount of funding offered against euro-denominated corporate bonds collateral decreased while the funding against Euro government bonds was unchanged, according to the European Central Bank. The report concluded the amount of funding offered by convertible securities, high-quality corporate bonds, asset-backed securities and covered bonds fell in December while the funding from government bonds and equities was flat on the previous month. The ECB published on Friday the results of its December euro-denominated securities financing survey which offered a mixed picture of financing in the bloc. [Extracted from the article]

(Bloomberg) -- The European Central Bank skewed asset purchases under its new emergency program toward Italy, underscoring the institution's crisis-fighting role in the face of the coronavirus outbreak. ECB bought 4.7 billion euros of Greek debt so far, after it decided to include the country's sovereign bonds in its emergency-purchase program despite the fact that Greece still carries non-investment grade. [Extracted from the article]

The article discusses European Central Bank (ECB) has announced an emergency asset- purchase scheme that would buy funds in government and corporate bonds on March 18, 2020 due to the Coronavirus. It mentions that the new scheme of ECB will cover Greek sovereign bonds; and also mentions that central bankers are also well aware of another, less happy, link between monetary and coordinated fiscal policy.

The European Central Bank is running low on sovereign bonds to buy -- that undermines the credibility of its pledge to keep going until inflation picks up. If inflation takes two years to firm, the ECB could face a shortage of about 60 billion euros ($67 billion) in debt during the next phase of its asset-purchase program. [Extracted from the article]

The article discusses global bond yields is forcing investors to look outside of the usual refuges as they hunt for stable assets that provide a valuable return. It mentions that Gene Tannuzzo, who oversees Columbia Strategic Income Fund has added investment-grade corporate bonds from Europe. It also mentions that U.S. government bonds have got an extra boost from demand generated by the negative yields in Europe. It discusses plans of European Central Bank to purchase more corporate bonds.

The European Central Bank might be joining a growing wave of investor pessimism on corporate debt. "Surveying the recent ECB buying data makes us worry that the ECB may have already lost its "mojo" for buying corporate bonds", said Bank of America Merrill Lynch in a report. [Extracted from the article]

Central bank could take "last-in, first-out" approach to taper "We think that there is a small risk that corporate bond purchases could be stopped by as soon as the end of this year if the ECB follows a "last-in, first-out" approach to winding down their asset purchase program", according to the strategy team. [Extracted from the article]

Derivatives market-makers have said they are confident of increasing their activities this year despite a withdrawal from the market in 2019, according to the European Central Bank. US exchange Cboe Global Markets said in June it wanted to add more non-ETF market-makers to its program for corporate bond index futures to build on strong liquidity seen less than a year after launch. [Extracted from the article]

ECB's Foray Into Junk-Rated Bonds Seen as "Too Little, Too Late" The ECB this week expanded its bond-buying initiative to stimulate the region's flagging economy to include corporate bonds along with covered bonds, asset-backed securities and government debt. ECB monetary stimulus has been driving investors into speculative-grade deals in recent months in a search for positive returns amid a negative interest-rate environment. [Extracted from the article]

Draghi to "stick to script" and adopt wait & see stance: KBC German government bonds held a two-day gain amid speculation that European Central Bank President Mario Draghi will emphasize that officials are willing to extend stimulus if needed following a policy meeting Thursday. [Extracted from the article]

Finnish central-bank chief Liikanen a bellweather for ECB mood The European Central Bank is likely to exceed its inflation goal for a while after a long period of near-stagnant prices, Governing Council member Erkki Liikanen said. [Extracted from the article]

The European Central Bank said it plans to start buying corporate bonds in June as it unveiled more details of its purchase program. Euro-area national central banks will buy corporate bonds on behalf of the ECB, as they do for its covered bond and government debt-buying programs. [Extracted from the article]

Currency weakens even as Polish zloty gains on ECB stimulus Mario Draghi unleashed his most audacious stimulus package yet on Thursday, by cutting the rate on cash parked overnight at the ECB by banks by 10 basis points to minus 0.4 percent and lowering its benchmark rate to zero. [Extracted from the article]

The ECB will buy investment-grade euro-denominated bonds issued by non-bank corporations established in the euro area, according to a press release on Thursday. ECB purchases of company securities could serve to limit liquidity in a market where investors say it's become harder to trade after banks cut their bond holdings to preserve capital in response to tougher rules. [Extracted from the article]

Banks expect to retreat even further from market making activities in euro-denominated securities in 2016, as their confidence in their ability to act as market makers during periods of stress wanes, the European Central Bank said on Tuesday. [ABSTRACT FROM AUTHOR]

Two deals from Poland and Slovakia this week showed how emerging market borrowers and their bankers need to come up with new ways to price CEE bonds, and fast. With European quantitative easing distorting secondary prices to the point of uselessness, deals should now factor in a 'liquidity premium', writes Virginia Furness. [ABSTRACT FROM AUTHOR]

As European companies ramp up public borrowing, bond buyers can sacrifice returns for low default risk or opt for high-yield paper. [ABSTRACT FROM AUTHOR]

The article focuses on the business reports of tax-exempt market and sales of several financial bonds including corporate bond, municipal bond. It informs that European Central bank has launched a new bond purchasing program which has resulted in the price rise of shares in stock markets and lowering in the prices of treasury bonds. It informs that highest price placed for it bonds is 271.5 million U.S. dollars by Ramirez & Co.